Global Daily Tax News, HK Lawmakers Sign Off On Budget Tax Relief Measures, (May 14, 2026)

Hong Kong's Legislative Council signed off on the Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 on May 13, 2026.

The Bill implements the concessionary tax measures proposed in the 2025 Policy Address and the 2026-27 Budget.

The measures include increasing the basic allowance, married person's allowance, single parent allowance, basic and additional child allowance, basic and additional allowance for dependent parent/grandparent, and the deduction ceiling for elderly residential care expenses, as well as extending the claim period for additional child allowance for newborns starting from the year of assessment 2026/27.

The measures also include a one-off 100 percent reduction of salaries tax, tax under personal assessment, and profits tax for the year of assessment 2025/26, subject to a ceiling of HKD3,000 per case.

The legislation will be published in the Official Gazette on May 22, 2026.

The changes will be reflected in taxpayers' final tax payable for the year of assessment 2025/26 and the tax payable for the year of assessment 2026/27, respectively, the Inland Revenue Department has confirmed.